Anthony Mejia

English 2010
Mrs. Pack
Evaluation

Mejia 1

Evaluation on the American Economy

Six decades have passed since the 1960's and has the U.S economy changed much or
does history repeat? In the early 1960's the American economy was very stable but as it
progressed into the 1970's the nation hit troubled times. During this era America was recovering
well from the Great Depression, but also began getting into external conflicts with other
countries which led to an economic downfall. Comparing the nation's current economy to a
similar era can help evaluate the situation and possibly predict future outcomes.
There were different industries that stimulated the American economy in the 1960's
which were both the main source for the middle class jobs and source of money circulation. For
example the Automotive business was high in demand and expanding with new locations and
offering tons of jobs. The Housing industry was also exploding throughout the nation as people
were looking for homes and the cost was fair. Both industries were doing well because of the
baby boom generation which influenced the economy heavily. Technology also had a major
breakthrough "In the 1960's business saw the development of a number of important innovations
that would come to define modern life. Color television and satellite communications were both
deployed in large scale during the 1960's" demonstrates the demand for such inventions. There
was also a huge spark in the computer business as integrated circuits came about and
programming grew which lead to personal computers. With business expanding and money
circulating the economy during the 1960's was healthy. Currently the economy runs on
technology as just about everything has gone virtual and wireless. Energy resources such as
electricity and oil have increased it's influence and continue to manipulate its value even as they

Anthony Mejia
English 2010
Mrs. Pack
Evaluation

Mejia 2

start to compete with new green energy sources such as solar power. Construction work is a
steady business with some occasional slow days, but it is still a major influence in the economy
from private business to government work. Although the industry influences have changed over
the years, major industries are doing well to help stimulate the economy like in the 1960's. In this
aspect the economy was stayed the same unlike other factors.
Like technology in America the currency of the Dollar has changed dramatically several
times since the 60's. The Dollar's value has decreased as the economy fell into hard times and
slowly became stable as it adjusted itself. One way to compare the Dollar value to then and now
is by showing the difference in costs. Example the average cost of gas was at one point thirty-one
cents when currently it has been relatively close to four dollars per gallon. Luckily the price has
dropped (because of oil conflicts with other countries) to around three dollars on average nation
wide. Twenty postage stamps were worth a dollar and now depending on the state you might get
the same amount of stamps for around eight dollars. A house was worth around $24,000 in the
1960's and in 2011 it was risen to $212,300 according to the U.S census. Different reasons cause
the currency to change it's value.
Factors that mainly control the currency in the U.S are the exchange rates and treasury
notes. The exchange rates depend on other nations economy and stability which then determines
the value of the Dollar. Over the years the U.S was able to compete with foreign nations and
their currencies. But in the last couple of years the American government has been increasing
and decreasing at steady rates but maintaining a strong economy and the largest in the world. But
just recently China's economy has put us in 2nd place as it was been expanding it's trade with

Anthony Mejia
English 2010
Mrs. Pack
Evaluation

Mejia 3

other foreign countries. The exchange rates is comparison between countries and determines the
importing and exporting of valuable goods which then determines it's cost in the U.S. As for
treasury notes they serve as investments to those who buy them and it's circulation to the
government. The interest rate might be low but it helps pay for all fields around the government
like debt, Medicare and others expenses. Treasury bonds pick up what tax revenues are not able
to pay for. Currently treasury bonds have are stable in demand and still valuable because the U.S
government is still trustworthy for paying back. But with our debt rising this could end up
changing the demand.
In the late 60's and early 70's is when the economy began to change and the cause of it
was external problems with foreign countries. During this era America had issues with Russia
because of communism and that lead to the Cold War and the Vietnam War which hurt America's
economy badly. The Cold War was not a direct fight with Russia but a conflict between two
countries trying to prove whom is better. This event led to the arms race and space race where
America spent a great deal of wealth in weapons, warships, spaceships, and nukes. During the
Cold war we also got in conflict with Cuba because they sided with the Russians. As America
spent money on trying to dominate the competition of having a bigger army it was also trying to
be the first in space. And on top of it all we invaded a country to stop communism from
spreading which took place in Vietnam and ended up being a brutal war in which we lost. Before
the economy had a chance to recover properly from the Great Depression the U.S ended up
getting more in debt. Recently we have been recovering from a recent recession that took place
between 2007 - 2009. Even though the nation's debt is still high America has been steady and the
economy is adjusting to the new times. But once again external conflicts are arising with the

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English 2010
Mrs. Pack
Evaluation

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terrorists group ISIS in the middle east, Russia and Ukraine, and lately North Korea a country
trying to get attention. If America plans and finds solutions first then we can financially continue
to grow and still help other countries.
History tends to repeat because people do not realize the mistakes that have been made in
the past and so when the situation rises again nothing changes. By realizing the importance of a
situation we can dissect the problem and fix different parts and manage others in the long run.
How much more can the economy handle, America found out in then 1970's, should we try
again. Debt is a serious problem that can the currency to drop, make the treasury bonds worth
less, and make The U.S untrustworthy. Does America need to drop to 5th in the world economy
to understand the situation.
Works Cited

Amendeo, Kimbery. "Value Of Money." About News. N.p., 4 Apr. 24. Web. 18
Mar. 2015. <http://useconomy.about.com/od/inflationfaq/p/Value-OfMoney.htm>.
"A History Of The U.S Economy." Random History. N.p., 8 Sept. 2010. Web. 18 Mar. 2015.
<http://www.randomhistory.com/us-economy-history.html>.
Patryni, Matt. "Important Busimess Industries in 1960's." EHow. N.p., n.d.
Web. 17 Mar. 2014<http://www.ehow.com/info_8010938_important-businessindustries-1960.html>.
"Remebering What A Buck Could Buy In The 1960'" Dummies. N.p., n.d. Web.
17 Mar. 2015. <http://www.dummies.com/how-to/content/rememberingwhat-a-buck-could-buy-in-the-1960s.html>.

Anthony Mejia
English 2010
Mrs. Pack
Evaluation

Mejia 5

"United States Government debt Stats", NationMaster. Retrieved from

http://www.nationmaster.com/country-info/profiles/UnitedStates/Economy/Debt/Government-debt